US crude oil on January 25
On January 25, at 5:19 AM EST, US crude oil March futures rose by 21 cents. Oil prices gained because of ongoing political unrest in Venezuela. However, oil’s upside was limited by factors like concerns surrounding the economic slowdown. According to the Ifo Institute for Economic Research, Germany’s business climate index fell to 99.1 in January—the lowest level in 23 months. Germany is the world’s fourth-largest economy and the largest economy on the European continent.
On January 25, $54 will likely be an important level for oil traders. In the last two trading sessions, US crude oil March futures didn’t decisively break above this level. Since November 21, US crude oil active futures didn’t close above the $54 mark. In Part 4 of this series, we’ll discuss the important closing level for US crude oil next week.
On January 24, US crude oil March futures rose 1% and settled at $53.13 per barrel despite bearish inventory data. In the trailing week, US crude oil prices rose 1.5%. However, the Energy Select Sector SPDR ETF (XLE) rose 0.5% on January 24. The S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) returned 0.1% and -0.1%, respectively, which might have limited energy stocks’ upside.
Next, we’ll discuss the key drivers for energy ETFs. In Part 3 of this series, we’ll analyze US crude oil’s relationship with these equity indexes. Integrated energy stocks like ExxonMobil (XOM) and Chevron (CVX) are also sensitive to oil prices.